CHAPTER 1-10: CLAIMS AGAINST THE CITY
SECTIONS:
1-10-1: FORM AND TIME LIMIT FOR ALL CLAIMS AGAINST THE CITY:
1-10-3: AUTHORIZATION OF WARRANTS:
1-10-4: MANNER OF APPROVAL, DISAPPROVAL AND PAYMENT OF DAMAGE CLAIMS:
1-10-5: DEFENSE OF DISAPPROVED CLAIMS:
1-10-6: DEFENSE FUND ESTABLISHED:
1-10-7: DEFENSE AND INDEMNIFICATION:
1-10-8: AUTHORITY TO OBTAIN LIABILITY INSURANCE:
1-10-1 FORM AND TIME LIMIT FOR ALL CLAIMS AGAINST THE CITY:
All claims and demands against the City shall be made in accordance with Title 12, Chapter 7, Article 2, Arizona Revised Statutes. (Ord. 3410, eff. 10-26-95; amd. Ord. 3654, eff. 8-21-97)
1-10-2 PETTY CASH ACCOUNT:
The Treasurer shall be authorized to establish a Petty Cash Account for the use of departments requiring change funds and for the payment of minor or emergency claims and also a payroll account for the payment of payroll demands. (amd. Ord. 3410, eff. 10-26-95)
1-10-3 AUTHORIZATION OF WARRANTS:
When funds are not available for the payment of claims or demands against the City, the Mayor and Council shall authorize the registration of warrants at a designated bank. Warrants shall be drawn on the Treasurer and signed by the Mayor and Manager and shall be redeemed by City checks in customary form. (amd. Ord. 3410, eff. 10-26-95)
1-10-4 MANNER OF APPROVAL, DISAPPROVAL AND PAYMENT OF DAMAGE CLAIMS:
(amd. Ord. 3186, eff. 5-12-94; amd. Ord. 3410, eff. 10-26-95)
(A) Claims not exceeding Twenty-Five Thousand Dollars: Following review of the damage claim investigation, the City Manager or his designee may authorize just and reasonable settlements not to exceed twenty-five thousand dollars ($25,000.00), or may disapprove any such claim.
(B) Settlement of Litigation: The City Attorney may authorize just and reasonable settlements of litigation in a sum not to exceed twenty-five thousand dollars ($25,000.00).
(C) Any settlement of a claim or litigation in excess of twenty-five thousand dollars ($25,000.00) shall be subject to approval by the City Council.
(D) The City Treasurer is hereby authorized to pay settlements of claims as set forth in this section from the defense fund established under Section 1-10-6, or such other monies as may be available for payment thereof.
1-10-5 DEFENSE OF DISAPPROVED CLAIMS:
When a claim for damages against the City has been disapproved, the City Attorney shall defend the City in the event of subsequent litigation and may expend necessary and reasonable costs for such defense and/or retain outside legal counsel to assist in the defense of the City. The City Treasurer shall pay such costs from the fund established under Section 1-10-6.
1-10-6 DEFENSE FUND ESTABLISHED:
The City shall establish a fund for the purpose of defending and/or settling and paying claims against the City. The fund shall be known as the City of Prescott Insurance Claims Deductible Fund and shall be in addition to any other self-insurance funds authorized by the Council. (amd. Ord. 3115, eff. 8-10-93)
The Fund hereby created may be utilized for the investigation, defense, settlement and satisfaction of claims for damages or judgments against the city, for risk abatement and risk mitigation projects, and for the payment of premiums for any and all insurance purchased by the City of Prescott. (Ord. 1811, 8-26-86) (amd. Ord. 3115, 8-10-93)
1-10-7 DEFENSE AND INDEMNIFICATION:
(A) Defense and Indemnification:
1. Except as hereinafter provided, the City shall, upon the request of any present or former officer or employee of the City, provide for the defense of and indemnify the officer or employee in a civil action if the officer or employee:
(a) acted or failed to act in a manner in which the City has or had an interest; or
(b) acted or failed to act in the discharge of a duty imposed or authorized by law.
2. The City shall refuse to provide for the defense of and indemnification of any civil action referred to in (A)1 herein, or any other civil action, if the City Attorney finds that:
(a) the act or omission did not occur within the scope of the duty authorized or imposed by law;
(b) the act or failure to act was the result of actual fraud, willful misconduct or actual malice of the officer or employee requesting defense and indemnification; or
(c) the defense of the action or proceeding by the City would create a conflict of interest between the City and the officer or employee involved.
3. In any proceedings other than those described in subsections (A)1 and (A)2 of this Section, including criminal proceedings, the City may provide for the defense of a present or former officer or employee, if the City Attorney concludes that such representation is in the best interests of the City.
4. For the purposes of this Section, the City’s authority to defend and indemnify present or former City officers or employees shall extend to a cross claim or counterclaim against such officer, agent or employee.
5. For the purposes of this Section, the City’s obligations to officers and employees and the duties of officers or employees shall extend to and include City volunteers whose volunteer service to the City has been approved by an authorized City official. (Ord. 3477, eff. 3-14-1996; amd. Ord. 3855, 3-9-1999)
(B) Officer, Employee Duties:
1. In the event of an occurrence which the officer or employee calculates may result in personal liability of such officer or employee, the officer or employee shall promptly notify the Risk Manager and his/her direct supervisor of the occurrence, in writing, describing the occurrence in detail, including:
(a) Time, place and circumstances of the occurrence; and
(b) Names, telephone numbers and addresses of the injured person or persons, and of available witnesses.
2. If a claim or suit is brought against the officer or employee, the officer or employee shall promptly forward to the City Attorney every demand, complaint, summons or other process received by him or her, or by his or her representative. (Ord. 3477, eff. 3-14-1996)
3. The officer or employee shall cooperate with the City and, upon the City’s request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or entity who may be liable to the City. The officer or employee shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The officer or employee shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than first aid to others at the time of occurrence.
4. In the event the conditions contained in this Section are not complied with by the officer or employee, the City may elect to decline representation and/or indemnification of the officer or employee. (Ord. 2279, 6-25-1991)
(C) Control Of Litigation: Whenever the City provides for the defense of an action set forth in this Section, as a condition of such defense, the City may assume exclusive control over the representation of such person defended and such person shall cooperate fully with the City; provided, however, that any person may at any time and at such person’s option take control over representation by waiving all rights to payment for costs of defense.
(D) Attorney Of Record: The City may provide for the defense pursuant to this Chapter.
(E) Subrogation: In the event of any payment under this Section, the City shall be subrogated to all of the officer’s or employee’s rights of recovery against any person or entity and the officer or employee shall execute and deliver documents and do whatever else is necessary such that the City’s right to subrogation is secure. The officer or employee shall do nothing to prejudice the City’s rights to subrogation. (Ord. 1811, 8-26-1986)
1-10-8 AUTHORITY TO OBTAIN LIABILITY INSURANCE:
(A) Nothing contained in this Chapter shall prohibit the City Council from obtaining liability or other insurance coverage from private insurance carriers or insurance pools.
(B) In the event that the City Council obtains liability insurance which requires claims processing in a manner different from that prescribed in this Chapter, those contractual requirements shall supersede any procedures set forth in this Chapter to the extent that said requirements conflict with this Chapter, and to the extent that any such claim is a covered claim under the City’s applicable policy of insurance. (Ord. 2392, eff. 6-9-1992)
1-10-9 SEVERABILITY:
The provisions of this Chapter are declared to be severable and if any section, sentence, clause or phrase of this Chapter shall for any reason be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses and phrases of this Chapter, but they shall remain in effect, it being the legislative intent that this Chapter shall stand notwithstanding the invalidity of any part. (Ord. 1811, 8-26-1986)